Quick Answer
Hire in-house if you are building a core team for the long term and have the runway for 3 months of recruitment. Use a subscription if you need to ship now, want predictable costs, and cannot absorb the risk of a bad hire. A subscription assigns a developer in 24 hours. In-house takes 8 to 12 weeks.
In This Guide
The Real Cost of an In-House Developer
Most founders budget for salary. The full picture is larger than that.
Direct costs
- Salary: Mid-level developers command significant monthly salaries.
- Employer Taxes: Significant overhead on top of gross pay.
- Benefits: Insurance, equipment, and leave add further overhead.
- Recruitment fee: Agencies charge 15 to 25% of annual salary upfront.
Hidden costs
- Management time: Performance reviews, code reviews, and meetings.
- Onboarding: A new developer takes weeks before they are fully productive.
- Notice periods: Exit processes are slow and often costly.
What a Subscription Model Costs
A managed developer subscription works differently. There is one fixed monthly fee. No recruitment cost. No employer taxes. No benefits management. No HR overhead.
You get the developer assigned within 24 hours. A project coordinator handles communication and daily updates. You direct the output. You do not manage the developer directly.
Cancel anytime before the next billing cycle. There is no notice period.
Head-to-Head Comparison
| Factor | In-House Hire | Managed Subscription |
|---|---|---|
| Time to start | 8 to 12 weeks | 24 to 72 hours |
| Recruitment fee | 15 to 25% of salary | None |
| Monthly cost | Salary + Taxes + Benefits | Fixed monthly fee |
| Management | Your responsibility | Coordinator included |
| Exit process | 1 to 3 months notice | Cancel anytime |
| Best for | Long-term core team | Speed and flexibility |
The Bad Hire Risk
The biggest hidden cost of in-house hiring is the bad hire. If a developer does not perform after onboarding, you have already spent months and thousands of dollars. The exit process adds even more delay.
With a subscription, this risk sits with the provider. If a developer is not the right fit, the provider replaces them. You do not start over.
When to Choose Which Model
Choose in-house if:
- You are building core proprietary technology that requires years of deep institutional knowledge.
- You have 3+ months of runway and can absorb the recruitment timeline.
- Physical presence is critical to how your team operates.
Choose a subscription if:
- You need to ship a feature or product in the next 30 days.
- You want to avoid the risk and cost of a bad hire.
- You need predictable costs without variable payroll overhead.
- You want the option to scale up or down based on your roadmap.
Frequently Asked Questions
Is it cheaper to hire in-house or use a subscription?
A subscription is typically cheaper in the short to medium term. The true cost of an in-house developer is significantly higher than most founders budget for. A subscription has no recruitment costs and a single fixed monthly charge.
How fast can I start?
A developer is assigned within 24 hours of onboarding. Traditional in-house hiring takes 8 to 12 weeks.
Can I cancel anytime?
Yes. Cancel before the next billing cycle. No notice period. All code built remains yours.
Who manages the developer?
The provider does. Hokantan includes a dedicated project coordinator who handles daily updates and coordination. You set direction. You do not manage the developer directly.